Assessing Risk Effectiveness and Control: Questions for HR Personnel

Key Questions:

1. Effectiveness:
   • Does this control actually prevent or mitigate the identified risk?
   • Can we demonstrate a decrease in risk probability or impact since implementing this control?
   • Are there alternative controls that might be more efficient or effective?
2. Efficiency:
   • Is the cost of implementing and maintaining this control justified by the level of risk reduction achieved?
   • Are there administrative burdens associated with the control that impact employee satisfaction or productivity?
   • Can the control be streamlined or simplified without compromising its effectiveness?
3. Compliance:
   • Do employees understand and adhere to the control measures?
   • Are there documented procedures in place for implementing and monitoring the control?
   • Have all relevant stakeholders been consulted and involved in the development and implementation of the control?

Examples of Risk Management Techniques:

• Risk Effusiveness Technique: Brainstorming. Gather a diverse group of stakeholders within and outside HR to identify potential risks. Encourage creative thinking and “worst-case scenarios” to uncover all possibilities.
• Risk Control Process: Incident reporting system. Implement a system for employees to report potential risks or near misses. Analyze trends and use the data to improve existing controls or identify new risks.

Importance of Involving HR in Risk Assessment:

1. Employee Impact: HR understands the potential impact of risks on employee safety, engagement, and well-being. Their involvement ensures risk assessments consider these crucial factors.
2. Policy and Compliance: HR plays a key role in developing and enforcing policies and procedures that mitigate risk. Their involvement ensures risk assessments identify areas where policies need to be strengthened or updated.

Additional Justifications:

• Collaboration creates better outcomes: Diverse perspectives lead to more comprehensive risk identification and more effective control strategies.
• Shared ownership drives implementation: When stakeholders across departments understand the risks and their roles in mitigation, they are more likely to actively participate in implementing controls.

Remember, these are just a few examples and questions to get you started. Adapting the specific questions and techniques to your organization’s unique context and risks will be crucial for effective risk management.